6. A company has bonds outstanding with a par value of $200,000. The unamortized discount on...
6. A company has bonds outstanding with a par value of $200,000. The unamortized discount on these bonds is $4,500. The company retired bonds by buying them on the open market at $195,000. What is the gain or loss on this retirement?
A. $0 gain or loss
B. $5,000 loss
C. $5,000 gain
D. $500 loss
E. $500 gain
(show your work please)
Homework Answers
The gain or loss on this retirement is computed as follows:
= Par value - buying price in the market - unamortized discount
= $ 200,000 - $ 195,000 - $ 4,500
= $ 500 gain
So the correct answer is option E i.e. $ 500 gain.
the gain or loss on this retirement
Add Answer to:
6. A company has bonds outstanding with a par
value of $200,000. The unamortized discount on...
(Please show work) Campbell Corporation has $100 million of debenture bonds outstanding that have an unamortized...
(Please show work) Campbell Corporation has $100 million of debenture bonds outstanding that have an unamortized discount of $27 million. Lower interest rates convinced the company to pay off the bonds now by purchasing them on the market where the price of the bonds is 90. What is Campbell's gain or loss on the retirement of the bonds? How would this gain or loss be shown in the financial statements? What is Campbell's gain or loss on the retirement of...
A company retired $530,000 of bonds, which have an unamortized discount of $13,000, by repurchasing them...
A company retired $530,000 of bonds, which have an unamortized discount of $13,000, by repurchasing them for $530,000. What is the amount of the gain or loss on the retirement of the bonds? Multiple Choice Ο ) There was a $13,000 gain, Ο There was a $13,000 loss. Ο There was a $530,000 loss. Ο There was no gain or loss.
Clabber Company has bonds outstanding with a par value of $100,000 and a carrying value of...
Clabber Company has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is: $5,000 loss $2,700 gain $2,700 loss $2,300 loss $2,300 gain
24. A Company retired $930,000 of bonds which have an unamortized discount of $33,000, by paying...
24. A Company retired $930,000 of bonds which have an unamortized discount of $33,000, by paying bondholders $950,000. What is the amount of the gain or loss on the retirement of the bonds? a) There was a $20,000 loss. b) There was a $13,000 gain. c) There was a $13,000 loss. d) There was a $53,000 loss.
Clabber Company has bonds outstanding with a par value of $108,000 and a carrying value of...
Clabber Company has bonds outstanding with a par value of $108,000 and a carrying value of $102,100. If the company calls these bonds at a price of $99,000, the gain or loss on retirement is: $5,900 loss. $3,100 gain. $9,000 loss. $3,100 loss. $5,900 gain.
Hogan Company has bonds with a principal value of $1,000,000 outstanding. The unamortized premium on the...
Hogan Company has bonds with a principal value of $1,000,000 outstanding. The unamortized premium on the bonds is $12,000. The company redeemed the bonds at 104. What is the company’s gain or loss on the redemption? Group of answer choices $52,000 loss $52,000 gain $4,000 gain $4,000 loss $28,000 loss
Mandarin Company has 9%, 20-year bonds outstanding with a par value of $500,000 and a carrying...
Mandarin Company has 9%, 20-year bonds outstanding with a par value of $500,000 and a carrying value of $475,000. The company calls the bonds at $482,000. Calculate the gain or loss on the retirement of these bonds.?
Determining Gain or Loss on Bond Redemption On April 30, one year before maturity, Middleton Company...
Determining Gain or Loss on Bond Redemption On April 30, one year before maturity, Middleton Company retired $200,000 of its 9% bonds payable at the current market price of 101 (101% of the bond face amount, or $200,000 x 1.01 = $202,000). The bond book value on April 30 is $196,600, reflecting an unamortized discount of $3,400. Bond interest is currently fully paid and recorded up to the date of retirement. What is the gain or loss on retirement of...
MSG Corporation has $1,000,000 of 10-year, 6% bonds outstanding on December 31, 2018. The bonds have...
MSG Corporation has $1,000,000 of 10-year, 6% bonds outstanding on December 31, 2018. The bonds have 3 years remaining to maturity. Assume interest is paid at the end of each month. The unamortized premium remaining on these bonds was $60,000. MSG uses straight-line amortization, so the unamortized premium would be $40,000 on December 31, 2019, provided none of the bonds had been retired before that day. 2. On May 1, 2019, $100,000 of the bonds were retired at 112. How...
A corporation issued 8% bonds with a par value of $1,190,000, receiving a $58.000 premium. On...
A corporation issued 8% bonds with a par value of $1,190,000, receiving a $58.000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is: Multiple Choice o o o О 6200 gain o o st 900 gain
A company retired $530,000 of bonds, which have an unamortized discount of $13,000, by repurchasing them for $530,000. What is the amount of the gain or loss on the retirement of the bonds? Multiple Choice Ο ) There was a $13,000 gain, Ο There was a $13,000 loss. Ο There was a $530,000 loss. Ο There was no gain or loss.
24. A Company retired $930,000 of bonds which have an unamortized discount of $33,000, by paying bondholders $950,000. What is the amount of the gain or loss on the retirement of the bonds? a) There was a $20,000 loss. b) There was a $13,000 gain. c) There was a $13,000 loss. d) There was a $53,000 loss.
Determining Gain or Loss on Bond Redemption On April 30, one year before maturity, Middleton Company retired $200,000 of its 9% bonds payable at the current market price of 101 (101% of the bond face amount, or $200,000 x 1.01 = $202,000). The bond book value on April 30 is $196,600, reflecting an unamortized discount of $3,400. Bond interest is currently fully paid and recorded up to the date of retirement. What is the gain or loss on retirement of...
A corporation issued 8% bonds with a par value of $1,190,000, receiving a $58.000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is: Multiple Choice o o o О 6200 gain o o st 900 gain
Most questions answered within 3 hours.
-
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 1 hour ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 2 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 3 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 3 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 3 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 3 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 3 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 4 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 4 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 4 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 5 hours ago -
Bank of America has bonds that pay a coupon interest rate of 5.5
percent and mature...
asked 6 hours ago